Tensho Electric Industries Co., Ltd. (6776) AI Stock Analysis

• Market Cap: ¥4.47B
• Dividend Yield: 1.88%
• Average Volume (3M): 22.47K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.55
• Revenue Growth: -2.14%
• EPS Growth: 51.20%
• Country: JP
• Employees: 720
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 12.99
• Shares Outstanding: 17,014,000
• 10 Day Avg. Volume: 12,480
• 30 Day Avg. Volume: 22,473
• PEG Ratio: 0.10
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -7.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥288.00 ▲(8.27% Upside)

The overall stock score is primarily driven by solid financial performance and attractive valuation. The company's strong revenue growth and stable financial structure are significant positives, although challenges with operational efficiency and free cash flow remain. The low P/E ratio suggests potential undervaluation, while technical indicators show a neutral to slightly bearish trend.

Tensho Electric Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Tensho Electric Industries Co., Ltd. engages in the design, manufacture, and sale of plastic products in Japan and internationally. It offers containers for infectious medical waste; conductive printed-circuit board storage racks; and materials for logistics industry, returnable containers, etc. The company also original products, including Mippail, Tenbako, Tentaru, and Tensert racks; automobile parts, such as exterior and interior parts, air conditioners and thermal equipment parts, intake system parts, safety device parts, and engine peripheral parts. In addition, it offers home appliances, such as exterior parts of lighting apparatus and LCD televisions, as well as office equipment. Tensho Electric Industries Co., Ltd. was founded in 1936 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tensho Electric Industries generates revenue through multiple streams, primarily by selling its electronic components and systems to a wide range of industries. The company benefits from a strong demand for its products, particularly in the semiconductor and automation sectors. Key revenue streams include direct sales of electronic components, long-term contracts with industrial clients, and partnerships with major corporations in technology and manufacturing. Additionally, Tensho Electric may engage in research and development collaborations that lead to new product innovations, further enhancing its market position and revenue potential.

Tensho Electric Industries Co., Ltd. Financial Statement Overview

Summary

Tensho Electric Industries Co., Ltd. demonstrates solid revenue growth and a stable financial structure. Despite some challenges with operational efficiency and free cash flow, the company maintains a healthy balance sheet with manageable leverage. Continued focus on improving margins and optimizing capital expenditure will be crucial for sustaining long-term financial health.

Income Statement

The company has shown consistent revenue growth over the past years, with a notable increase from 2020 to 2025. Gross profit margin has remained relatively stable, indicating good cost management. However, EBIT and EBITDA margins have fluctuated, reflecting some operational efficiency challenges. Net profit margin shows a positive trend, suggesting improved bottom-line performance.

Balance Sheet

The balance sheet indicates a healthy equity position, with a solid increase in stockholders' equity over the years. The debt-to-equity ratio has been maintained at manageable levels, though there has been an increase in total debt for the latest year. The equity ratio is strong, highlighting a stable financial structure. However, the rising debt could pose future risks if not managed carefully.

Cash Flow

Operating cash flow has been robust, supporting the company's operations. However, free cash flow has been negative in recent years, reflecting high capital expenditures. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to net income. The company may need to focus on optimizing capital expenditure to improve free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.43B	27.89B	26.91B	23.90B	19.45B	15.56B
Gross Profit	4.21B	4.29B	4.32B	3.75B	2.87B	2.60B
EBITDA	3.21B	4.01B	3.73B	2.73B	2.25B	1.57B
Net Income	1.34B	1.26B	948.00M	612.00M	246.00M	158.00M
Balance Sheet
Total Assets	22.17B	22.14B	27.95B	27.56B	21.32B	17.32B
Cash, Cash Equivalents and Short-Term Investments	3.75B	3.30B	5.19B	5.50B	4.00B	2.89B
Total Debt	4.57B	4.49B	8.12B	7.84B	5.27B	4.29B
Total Liabilities	11.67B	11.49B	17.02B	18.04B	13.23B	10.18B
Stockholders Equity	10.50B	10.64B	9.25B	7.92B	7.06B	6.75B
Cash Flow
Free Cash Flow	0.00	-583.00M	-115.00M	-1.50B	567.00M	-971.00M
Operating Cash Flow	0.00	2.49B	2.69B	2.67B	2.43B	1.03B
Investing Cash Flow	0.00	-3.11B	-2.69B	-4.20B	-1.87B	-1.68B
Financing Cash Flow	0.00	619.00M	-622.00M	2.80B	545.00M	496.00M

Tensho Electric Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 266.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6776, the sentiment is Positive. The current price of 266 is below the 20-day moving average (MA) of 267.10, below the 50-day MA of 266.44, and above the 200-day MA of 259.25, indicating a neutral trend. The MACD of -1.43 indicates Positive momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 43.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6776.

Tensho Electric Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	81 Outperform	¥5.05B	7.64	―	3.07%	0.05%	9.31%
7284	71 Outperform	¥4.16B	7.23	―	4.17%	4.93%	―
6776	66 Neutral	¥4.47B	3.36	―	1.88%	-2.14%	51.20%
6699	63 Neutral	¥4.66B	8.84	―	6.66%	0.86%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6901	54 Neutral	¥4.37B	―	―	3.16%	-12.15%	-123.44%
7214	50 Neutral	¥4.53B	―	―	4.63%	4.74%	-193.39%